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Ericsson: New business unit structure to support networks growth

* Business unit Networks will be divided, creating two new units to support
growth strategy
* New business unit Radio will build on industry's most competitive radio
portfolio to leverage leading position
* New business unit Cloud&IP to capture opportunities with virtualization for
the IP and core portfolio based on number one position in telecom core
* Johan Wibergh, Executive Vice President, will assume new role as Head of
Segment Networks and remain a member of Ericsson's Executive Leadership

Ericsson (NASDAQ:ERIC) today announced the establishment of two new business
units in a move to accelerate transformation and support growth. The company
will split current business unit Networks into two new units, business unit
Radio and business unit Cloud&IP.

The change in organization will enable more focus on the needs of each
business while maintaining an end-to-end view on the full networks

Hans Vestberg, President and CEO of Ericsson, said, "The business logic and
Ericsson's relative position is different in the two areas. Radio is the
foundation of Ericsson's technology leadership and we are the undisputed
market leader, same size as number two and three together. We are committed
to maintain our leadership as the market evolves with 5G. In the cloud and IP
space, which are vital for the evolution to 5G, we have made significant
progress but are still a challenger. In a transforming market we will now
intensify our work to capture opportunities in virtualization and cloud,
building on our leading position in core networks."

The current business unit Networks has been successful in reinforcing
Ericsson's leadership position in the market, increasing R&D effectiveness
through common components and operational transformation resulting in quality
and margin improvements. In order to maintain focus on efficiency and
end-to-end approach for the full networks operations, a Segment Networks is
established. The segment, which will comprise the two new business units,
will work to ensure continued synergies in R&D, alignment of product
portfolio as well as marketing across the segment. Johan Wibergh, currently
head of business unit Networks, will assume the role as head of Segment
Networks. He will remain a member of Ericsson's Executive Leadership Team.

Johan Wibergh said: "My six years at the helm of Networks have been exciting
and now I am looking forward to support both BU's to a leading position
continuing to secure that we capture synergies while also assuming a more
corporate role. A top priority for me initially is to ensure that we keep
momentum in current business while we make the transition."

The two new organizations are estimated to be effective on July 1, 2014 with
the BU Management team and organizational structure in place. Complete
transformation is expected to be finalized during the 3rd quarter 2014.

For 2014 there will be no change in financial disclosures.

NOTES TO EDITORSDownload high-resolution photos and broadcast-quality video

Ericsson is the driving force behind the Networked Society - a world leader in
communications technology and services. Our long-term relationships with
every major telecom operator in the world allow people, business and society
to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure - especially in mobility, broadband
and the cloud

- are enabling the telecom industry and other sectors to do better business,
increase efficiency, improve the user experience and capture new

With more than 110,000 professionals and customers in 180 countries,

we combine global scale with technology and services leadership. We support
networks that connect more than 2.5 billion subscribers. Forty percent of the
world's mobile traffic is carried over Ericsson networks. And our investments
in research and development ensure that our solutions - and our customers -
stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales
in 2013 were SEK 227.4 billion (USD 34.9 billion). Ericsson is listed on
NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.

Phone: +46 10 719 69 92

Ericsson Investor Relations
Phone: +46 10 719 00 00

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via Globenewswire


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